Investor optimism for Shiba Inu surged following its recent breakout from a consolidation phase, but the anticipated rally has shown signs of stalling. Despite initial excitement, price movements have failed to accelerate, leading to questions about the sustainability of the upward trend. Market dynamics and on-chain data offer insights into the reasons behind this slow down.
A key factor in assessing Shiba Inu’s market activity is the volume of significant transactions and overall network activity. Recent data reveals a decline in transaction volume compared to previous peaks. While large transactions have seen some increase, the figures still fall short of levels seen during the asset’s major bull runs, suggesting that whales are less active in driving up prices.
Additionally, profitability data presents a mixed outlook for SHIB holders. While the majority of addresses holding SHIB are in profit, a substantial group of holders who bought at higher price points may be selling during the current rally, putting downward pressure on the market. Broader market conditions may also be influencing Shiba Inu’s underperformance.
Assets like Bitcoin, Ethereum, and XRP are currently attracting investor attention, leaving altcoins like SHIB with fewer opportunities to stand out amid the significant capital inflows into high-market-cap cryptocurrencies.
From a technical standpoint, SHIB has maintained support around the $0.00002300 mark, but trading volume remains low, indicating a lack of buying pressure needed to sustain a long-term rally. Unless substantial inflows or increased on-chain activity materialize, it could be challenging for SHIB’s price to continue climbing.
Meanwhile, Bitcoin is under close scrutiny as it hovers near the psychological and technical milestone of $100,000. However, a subtle divergence in the Relative Strength Index (RSI) has raised concerns. Despite Bitcoin’s price reaching all-time highs, the RSI has remained stagnant or even declined, signaling that the rally may be losing momentum. Historically, such divergences have preceded trend reversals, with past examples indicating potential market corrections. While a pullback is not guaranteed, caution is advised. Should a correction occur, the $75,000 range, aligned with Bitcoin’s 50-day exponential moving average, may serve as key support.
On a more optimistic note, Toncoin is catching the eye of crypto enthusiasts, with recent technical trends hinting at a potential rally. Trading at around $6.13, Toncoin has shown steady recovery from recent lows, supported by an uptick in trading volume that suggests renewed investor interest. However, it has yet to decisively break above key resistance levels, indicating that buyer confidence remains moderate.
Despite lagging behind assets like Bitcoin and Ethereum in terms of performance, Toncoin’s relative undervaluation positions it as a potential late-stage rally candidate, especially as capital begins to flow into cheaper assets. Technical indicators show that the asset is neither overbought nor showing signs of weakness, and the recovery from its 50-day EMA points to solid support. A move above $6.50 could pave the way for further gains, with the $7.00 resistance level in sight if market sentiment continues to improve.
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